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Russia releases rouble's market constraints


Russia releases rouble's market constraints


The Russian rouble gained in strength on Monday following a central bank decision to abandon the currency’s trading band.

The rouble has slumped some 30 percent against the dollar over the year as oil prices and Western sanctions hit the economy.

The rouble will float freely from next year.

Previously the currency had been kept in a nine rouble trading band against the dollar-euro, which limited the central bank’s foreign market interventions.

The bank says it will block supplies of the currency to stave off any speculative activity.

Meanwhile the central bank downgraded its forecast for economic growth and warned that Western sanctions look set to remain in place until 2017.

However the bank’s economists believe that Russia is likely to avoid sliding into a deep recession unless oil prices drop dramatically.

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